Respuesta :
Answer:
Option B.
Step-by-step explanation:
The future value formula, for an annuity, is:
[tex]FV = \frac{P((1+r)^{n} - 1)}{r}[/tex]
An annuity means that a number of payments happen during the period(an year, for example).
P is the value of the deposit, r is the interest rate, as a decimal, and n is the number of deposits.
In this question:
Deposits of $765.13, so [tex]P = 765.13[/tex]
Each month, for 3 years. An year has twelve months, so [tex]n = 3*12 = 36[/tex]
2% Interest a year. An year has 12 months, so [tex]r = \frac{0.02}{12} = 0.00167[/tex]
Find the final amount of the account.
[tex]FV = \frac{765.13*((1 + 0.00167)^{36} - 1)}{0.00167} = 28,363.46[/tex]
The final amount of the account will be $28,363.46, which is option B.
